There is still no clear direction in gold commodity trading at the beginning of the week which is flat making investors remain cautious.
The US dollar is expected to continue to be the driver of changes in the value of gold in the market as in the past weeks.
Although expected to continue strengthening this week supported by hawkish comments by Federal Reserve (Fed) Chairman Jerome Powell at the last FOMC meeting, the US dollar has yet to show a clear direction of movement.
As observed by the price movement on the XAU/USD chart which measures the value of gold against the US dollar on Monday yesterday, there was an initial rise in price towards the 1800.00 concentration zone.
However, failing to touch that important level, the price then displayed a bearish pattern back to around the 1785.00 level.
However, the price is seen to be still moving above the Moving Average 50 (MA50) support level on the 1-hour time frame on the XAU/USD chart, signaling a bullish move for gold.
Continuing trading today (Tuesday), the price is still hovering below the 1800.00 zone which remains a resistance for the price.
If the rise continues successfully and the price finally breaks through the 1800.00 zone, a bullish price movement will be expected for the price to reach the high level of last week around 1824.00.
Next, the 1830.00 zone will be the focus to be tested, besides the gold price will also record the latest high level for the 6-month trading period.
Meanwhile, as for expectations for the gold price decline pattern, a drop below the MA50 support level will next test the support level at the end of last week which is around 1775.00.
A clearer bearish trend change signal will then expect the price to continue its decline towards the RBS (resistance become support) zone at 1760.00.
